The Bretton Woods system was a fixed exchange rate regime in which central banks bought and sold their own currencies to keep their exchange rates fixed.

Question

Quizplus · Accepted Answer

This is an accurate description of the Bretton Woods system, which was established in 1944 and lasted until 1971. Under the system, the value of the US dollar was pegged to gold, and other countries agreed to maintain fixed exchange rates relative to the dollar. Central banks intervened in foreign exchange markets by buying and selling currencies as needed to keep their rates within the agreed-upon bands.

The Bretton Woods System Was a Fixed Exchange Rate Regime